Realty developer Supertech goes into insolvency, NCLT initiates proceedings
This is the developer's second significant setback in less than a year. The Supreme Court ordered the destruction of Supertech Ltd's twin 40-story buildings, which are part of the under construction Emerald Court project in Noida, on August 31, last year, for violation of building codes.
The National Company Law Tribunal (NCLT) launched insolvency proceedings against real estate business Supertech Ltd, one of the Supertech group's firms, on Friday. This is the developer's second significant setback in less than a year. The Supreme Court ordered the destruction of Supertech Ltd's twin 40-story buildings, which are part of the under construction Emerald Court project in Noida, on August 31, last year, for violation of building codes.
On Friday, an NCLT panel granted a petition filed by Union Bank of India, a financial creditor, claiming default against Supertech Ltd, and appointed an interim resolution specialist to replace the company's board of directors. The ruling was made orally in court, and a detailed order in this respect is pending. This revelation has come as a shock to almost 25,000 purchasers who have been waiting for years for possession of their houses booked with the developer. The developer is now working on various residential and commercial projects in the NCR area and other regions of north India.
Hitesh Goyal has been selected as the interim resolution professional by the NCLT's Delhi bench (IRP). Supertech Group confirmed the development and stated that it will appeal the ruling to the National Company Law Appellate Tribunal (NCLAT).
"In the matter of the NCLT's appointment of an IRP (Interim Resolution Professional) in one of the Supertech Group firms, management of the company announced that the company will approach NCLAT in an appeal against the ruling," Supertech Group said in a statement.
The NCLT ruling, however, will not disrupt the operations of the Supertech Group's other enterprises, according to the company. The NCLT ruling will have no effect on the company's existing projects or operations, and it stated that "we are committed to delivering delivery of units to allottees."
When approached, Mohit Arora, Managing Director of Supertech Group, stated, "In the Supertech Ltd, there are around 11-12 housing projects against which insolvency procedures have been begun. Approximately 90% of these projects have been finished." Supertech Ltd's debt is estimated to be approximately Rs 1,200 crore, including almost Rs 150 crore in Union Bank of India loans, he added. According to Arora, the company includes three to four additional firms that are working on a variety of projects around Delhi-NCR, including the premium project Supernova.